SENEGAL

Photo by: bertauxn

Republic of Senegal
République du Sénégal

COUNTRY OVERVIEW

LOCATION AND SIZE.

A relatively small country located in West Africa, Senegal has a total
area of 196,190 square kilometers (75,748 square miles), making it
slightly smaller than the state of South Dakota. Water composes 4,190
square kilometers (1,618 square miles) of this area, while the
coastline, which borders the North Atlantic Ocean, stretches for 531
kilometers (330 miles). Senegal is bordered to the north by Mauritania,
to the east by the Republic of Mali, to the south by Guinea and
Guinea-Bissau, and to the west by the Atlantic Ocean. The country of
Gambia juts out below the central part of the Senegalese coast, creating
a finger-like enclave that penetrates deep into Senegal. Dakar, the
capital of Senegal, is located on the northern coast.

POPULATION.

In July 2000 the population of Senegal was estimated at 9,987,494. The
growth rate was estimated at 2.94 percent per year, with a birth rate of
37.94 births per 1,000 people, and a death rate of 8.57 deaths per 1,000
people. The population of Senegal is young, with 45 percent under 14
years of age, 52 percent between the ages of 15 and 64, and only 3
percent above 65. A young population can benefit the economy because
there are fewer elderly people to care for. Yet it creates pressure on
the economy to continually expand to create new employment opportunities
for new entrants to the
labor force
. In 2000, the World Bank stated that 125,000 people were expected to
join the Senegalese labor force every year, creating a major impediment
to the country's developmental efforts. Therefore, the Senegalese
government has adopted a population control policy designed to limit the
birthrate of Senegalese women. The importance of reducing
Senegal's high fertility (5.21 children born per woman) will be a
difficult challenge for a country that is socially conservative and
resistant to using birth control.

Like many African countries, the people of Senegal are ethnically
diverse. Of the many ethnic groups that make up the Senegalese
population, 43.3 percent are Wolof, 23.8 percent Pular, 14.7 percent
Jola, 3 percent Mandinka, 1.1 percent Soninke, and 1 percent European
and Lebanese. Several smaller ethnic groups compose the remaining 9.4
percent of the population. The country is mostly Muslim, with 92 percent
of the population followers of Islam. Followers of several indigenous
religions constitute about 6 percent of the population, while the
remaining 2 percent are Christian, mostly Roman Catholic. French is the
official language of the country, though many people speak indigenous
languages such as Wolof, Pulaar, Jola, or Mandinka.

FISHING.

The fishing industry is one of the most important areas of primary
sector activity in Senegal. In 1994 the industry accounted for 8.5
percent of the GDP, employed 200,000 persons, provided 27.3 percent of
total exports, and earned US$240 million. Favorable world prices and
competitive pricing because of the 1994 currency
devaluation
boosted fishing exports. The output of fishing, or
"fish-catch," reached 486,800 metric tons in 1997. This
figure demonstrates the exceptional growth of the fishing industry in
recent years, considering that total output for 1991 was only 387,800
metric tons. According to the U.S. State Department
Country Commercial Guide
, the development of the fishing sector is hampered by an aging and
outmoded fleet, the threat of over-fishing (thereby depleting supply),
and stiff competition from South Asia in international fish markets.

Livestock and forestry are less important contributors to the
country's GDP. Forestry has shown little growth over the years,
comprising only 0.8 percent of the GDP in 1991 and marginally less in
1998 (0.6 percent of the GDP). Livestock has figured more prominently.
In 1991 it included 6.9 percent of the GDP and 7.0 percent in 1998.

INDUSTRY

The secondary economic sector, that is, the sector that converts primary
goods into finished products and is more commonly referred to as
industry, accounted for 20 percent of Senegal's GDP in 1997. The
2 major industrial activities are mining and manufacturing.

MINING.

Mining output in Senegal is primarily calcium phosphates. In 1994
phosphate and phosphate products accounted for 19 percent of total
merchandise export earnings, producing US$162 million in export revenue.
While Europe has traditionally been the major importer of Senegalese
phosphates, the U.S. State Department
Country Commercial Guide
notes that new markets in Asia and Africa have recently developed.
Despite its importance as an exporting industry, however, phosphates
have not played a large role domestically. Phosphate mining accounts for
less than 2 percent of Senegal's GDP. The industry provides
important jobs, but only about 2,000 are available. Production of
phosphates has also decreased over the past several years. In 1991
phosphate production reached 1,546 metric tons, whereas figures for 1998
were much less at 1,087 metric tons. This reflects diminishing reserves
of phosphates and illustrates how environmental or geographical factors
can influence a country's economy.

MANUFACTURING.

Manufacturing is an important component of the secondary sector,
accounting for 12.5 percent of GDP. Senegalese industries process a
range of commodities that includes food, textiles, wood products,
chemicals, construction materials, machinery, equipment, electricity,
and water. Food ranks as the most important economic contributor,
accounting for 43.1 percent of all industrial manufacturing output. Food
production consists of fish canning, oil milling, and sugar refining.
Textiles, along with clothing and leather, account for 12.3 percent of
all manufacturing output. Senegal's textile industry is the most
important in black francophone (French-speaking) Africa, with 4
cotton-ginning mills and spinning, weaving, dyeing, and printing plants.
Chemical industries are the third largest contributor and account for
11.4 percent of output. Senegal produces refined petroleum, fertilizers,
pesticides, plastic, and rubber materials. Industrial production grew 7
percent in 1998, indicating that industrial manufacturing offers
important prospects for future economic growth.

TOURISM

. Known for its mild climate, multiple beaches, and great sport fishing,
Senegal has long been a tourist destination for European travelers,
particularly the French. The high season runs from December to February,
when Senegalese weather is most inviting. In recent years, the tourist
industry has skyrocketed. In 1991 about 269,300 tourists visited
Senegal, contributing 37.9 billion CFA francs to the economy. By 1997
the number of visitors reached 341,500 and contributed 80 billion CFA
francs to the economy. Tourism is now one of Senegal's major
sources of foreign currency earnings, which are vital for meeting the
country's import bills. Although most tourists are French, there
has been a rise in vacationers from other European countries and from
North America. Most of the impetus towards growth in the tourism
industry has come from the
private sector
. The government has hardly invested in tourism over the past 10 years
and sold off many state-owned hotels to the private sector.

FINANCIAL SERVICES.

As a member of the West African Economic and Monetary Union (UEMOA),
Senegal shares its currency, the CFA franc, with 6 other member
countries: Benin, Togo, Mali, Côte d'Ivoire, Burkina
Faso, and Niger. The CFA franc is issued by the West African Central
Bank. The commercial banking sector has a long history in Senegal, which
has 8 banks, all of them established prior to the 1990s. The largest
banks are French, reflecting the historical link between the French and
Senegalese economies. The Société Generale de Banques du
Senegal (SGBS), the largest commercial bank, with total deposits and
borrowing equaling 152,099 million CFA francs, is an affiliate of the
Société Generale de Banques of France. The Senegalese
government does not own any shares in the bank. The other commercial
banks are owned by private and foreign (French) shareholders, the major
exception being the Caisse Nationale de Crédit Agricole du Senegal.

RETAIL.

Besides a few large French-owned import-export firms that are involved
in retailing, there are many competitive small-scale traders
specializing in the wholesale and
retail
distribution of fabrics and consumer goods. In the past, Lebanese
merchants were the interface between French trading companies and the
Senegalese population. They are gradually being replaced by Senegalese
merchants selling popular consumer goods, such as textiles and
electronics. There are also a limited number of larger retail stores,
such as supermarkets, which deal in imported goods. Since the currency
devaluation in 1994, however, these stores are threatened by the high
costs of imports.

Because of the few employment opportunities offered in the formal
economy, many Senegalese have turned to the informal sector to survive.
The informal sector remains unregulated and untaxed because it operates
outside the administrative framework of the government. The
sector's activities are not criminal, but
"extra-legal," meaning they are legitimate and not
controlled. Informal activities range from selling fruit on
street-corners to selling sophisticated high-tech stereo equipment.
There are about 30,000 small businesses in the informal sector,
employing about 57,000 persons, according to 1995 estimates. Sandaga, a
sprawling unregulated market in the heart of Dakar, is the
capital's principal distribution center for manufactured goods
such as textiles, footwear, cosmetics, food, and electronic equipment.